03 November 2010 14:01 [Source: ICIS news]
“I won’t pull [€120/tonne] off the table if I am to keep my margin, but will the market accept it?” said the producer.
The proposed increase would take European prices up from the October contract settlements of €1,110-1,170/tonne FD (free delivered)
European raw material costs have been spiralling upwards following jumps in
In November, the price of the upstream product paraxylene (PX) could surpass €910/tonne, up from October’s €805/tonne FD NWE (northwest
Monoethylene glycol (MEG), PET’s other raw material, could reach €900/tonne, according to the producer.
MEG sellers are looking for €930-970/tonne FD NWE for November contracts. An October settlement was outstanding, with only one agreement recorded at €806/tonne, up €15/tonne from September.
PET customers and resellers acknowledged upstream developments but said they could not absorb the targeted increases. One source said a maximum of €70/tonne would be the likely outcome.
“There is enough competition in
The recent EU investigation into PET antidumping prompted plants in the
Spot PET prices hit €1,200/tonne FD Europe at the end of October, up from around €1,100/tonne at the beginning of the month.
“It will be difficult to go over €1,200/tonne,” said a reseller. It added that in recent days customers had reviewed their requirements downwards on receipt of high offers.
“[Buyers] will try to live off fat for a while,” the producer concluded.
($1 = €0.71)
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